Newcrest Archives - Industry Link Media Blog

February 10, 2023

What You Missed in the News This Week

The West Australia government fears heavy rains could wash polluted water from Alcoa mines into the state’s biggest dam, making the water undrinkable.

The US aluminium giant that mines bauxite within 300 metres of the water’s edge at Serpentine Dam changed its methods about five years ago, increasing the risk of sediment flowing into the dam.

If the water was contaminated, it would cost taxpayers up to $2.6b and potentially take years to fix.

Battery Age Minerals has appointed Nigel Broomham as it’s General Manager of Exploration.

Broomham will spearhead the exploration of its portfolio of international batter metal assets.

Battery Age CEO Gerard O’Donovan said “Nigel is a highly experienced geologist who played an important role in the exploration, development and operation of Pilbara Minerals’ world-class Pilgangoora lithium project,” he said.

“He brings extensive technical geological expertise, strong commercial acumen and considerable energy and enthusiasm – all of which will be invaluable as we embark on our growth journey as a diversified battery metals company.”

Aerison Group has been awarded multiple new contracts for projects in Western Australia and South Australia, totalling $100m.

The projects involve the rare earths, agricultural, green energy and chemicals sectors and includes the Yuri Green Hydrogen project in the Pilbara.

Aerison CEO Giuseppe Leone said “These contract awards are an important step in delivering our industry diversification strategy, with an increasing focus on the critical mineral, agriculture and chemicals sectors.”

Newcrest has received a $24B takeover offer from rival gold miner Newmont.

The offer would entitle Newcrest shareholders 0.38 Newmont shares for ever 1 Newcrest share they own.

Newmont president Tom Palmer said “The proposed transaction would join industry-leading portfolios of assets and projects to create long-term value across the combined global business, and we welcome the consideration of Newcrest’s board of directors.”

Hancock Energy is the sole bidder for the takeover of Warrego Energy after Strike Energy bowed out this week.

Mineral Resources and Beach Energy were both contenders but pulled out last month.

Strick Energy will still walk away with $116m from their shares worth 25.99% voting power.

The S&P/ASX200 markets closed lower today after a disappointing week.

Starting off at 7,560 points on Monday, the markets fell throughout the week to end on 7,434 points. The markets still sit 479 points higher than the start of the month.

The All Ordinaries closed lower too, at 7,631 points, though still higher than the last 6 months.

The gold price remained steady after the dramatic fall last week, hovering around $1,875USD, before finishing at $1,866.15.

Silver has remained steady, rounding off the week at $22.34USD.

August 14, 2020August 14, 2020

Morning News Bites – August 14

Morning News Bites as earnings season continues.

Clive Palmer is set to head to the high court with his battle against the Western Australian government. NAB cash earnings for the third quarter drop 7% and Woolworths appoints a Chief Medical Officer.

Middle Island Resources has announced it’s Two Mile Hill open pit Mineral Resources is up 13% and has taken the total for the Sandstone Gold Project to 657,500oz.This announcement follows on from a 52% increase last week for Middle Island’s Shillington Mineral Resource. Further resource estimates are due for five new satellite open pit deposits are still to come.

Newcrest Mining recorded gold production of 2.2 million ounces for its FY20. The darling of Newcrest in Australia, Cadia mine in New South Wales delivered 843,000oz of gold, with 96kt copper and 575koz silver. According to Newcrest Managing Director and CEO Sandeep Biswas, “Drilling results from Havieron and Red Chris continued to expand the known mineralisation with high grade intercepts. Our ownership of Havieron over the year increased to 40% as we track towards 70% underpinning the future of Telfer. We are in the unique position of having three outstanding growth options from which we expect to add new production ounces to our portfolio in due course.” A final dividend of US17.5 cents per share (100% franked), taking full year dividend to US25 cents per share. Newcrest also announced its biggest profit in eight years.

Significants nickel copper sulphides have been intersected from diamond drilling at Legend Mining’s Mawson prospect. Highlights included 9.3m of heavy disseminated to net-textured sulphide from 132.2m – 141.5m downhole and 15.35m of net-textured, heavy disseminated and semi-massive sulphide from 219.1m – 234.45m downhole. Managing Director of Legend Mining Mark Wilson said “Geologically we have now intersected significant mineralisation several hundred metres to the east north-east of our previous discovery and our geophysical advice is that we probably have not hit the best part of this conductor.”

First pass gold hits have been delivered to Golden State Mining at its Yule South target. Target 1 returned best intercept of 8m @ 0.92g/t Au from 96m incl. 4m @ 1.81 g/t Au from 96m, while Target 5 returned best intercept of 19m @ 91ppb Au from 46m incl. 4m at 350ppb Au from 58m. These results were from reconnaissance Aircore drilling based on aeromagnetic interpretation. Managing Director Michael Moore said “We are pleased with the calibre of these first pass gold results, having drilled gold intersections in just our first two targets of an essentially untested regional project area in an emerging gold district. To drill a gold intersection of 8m @ 0.92g/t Au from 96m including 4m @ 1.81 g/t Au from 96m in only the second drillhole of the 199 hole program speaks volumes about our targeting and strategy up at Yule.”

Iluka Resources returned a solid net profit after tax of $113 million from its half year results to June 30 2020. This is despite the Mineral Sands revenue being down due to COVID-19 on the world markets. Managing Director Tom O’Leary said the impact of COVID-19 lead to a decline of 20% in mineral sands sales volumes, but appeared pleased with the position Iluka are in Tom O’Leary, said “Iluka has recorded a solid first half result given the impact of COVID-19 on zircon and titanium markets and the global economy broadly. Given the volatility experienced throughout the world over recent months, we’re pleased with the earnings and cash position we’ve delivered.

July 23, 2020

Morning News Bites – July 23

Today’s Industry Link Media Morning News Bites :

Blow out in the Federal Budget – WA and Mining holding it together. Gold reaches over $1870US/oz overnight and this is set to lift the market in open.

Northern Star Resources has announced its Quarterly activities report with a record 262,717oz of gold sold at an AISC of A$1,475/oz, which included the KCGM Operations. Regional exploration for Northern Star was largely suspended due to COVID-19 and this affected Jundee/Yandal, Kanowna, Pogo and South Kalgoorlie, however at Paradigm a short surface RC resource definition drilling program was completed. The Pogo operations were affected by 36 COVID-19 cases and Northern Star expects Pogo volumes to remain around the levels seen in the June quarter, equal to ~25% lower than would otherwise be the case. Northern Star’s A$10M Community COVID-19 fund has provided significant funding to assist local health services, communities and businesses in the areas Northern Star operate. The option to acquire Newmont’s Power Business has lapsed and as such multiple future power options for KCGM now being explored. Executive Chairman of Northern Star Resources Bill Beament, said “Our quarterly sales of 262,717oz was not only a record, but also very solid given the imposts stemming from the COVID-19 measures we moved quickly to put in place,” When speaking about Pogo, Mr Beament said “Pogo sold 50,251oz in a quarter during which we managed 36 cases of COVID-19, We now have a strong insight into the impact of the virus on Pogo and it is clear that this asset will continue to produce at about 75 per cent of its potential while the virus remains in Alaska. However, the 18-month transition to long-hole stoping is finished and the benefits of this new mining method are being reflected in the results, albeit somewhat restricted by COVID-19″ Northern Star is also looking to reduce its hedging to increase margins and free cashflow. On July 16, Northern Star paid a fully franked interim dividend of 7.5cps.

Essential Metals (previously Pioneer Resources) has announced drill intercepts at its Cade deposit at the Dome North lithium project. A thick shallow high-grade intercept of 21m at 1.79% Li2O was discovered from recent RC Drilling. Essential Metals Managing Director, Tim Spencer, said “The outstanding shallow intercept of 21m @ 1.79% Li2O shows the Cade Deposit contains high lithia grades near surface, while drilling across the project has identified a number of other prospective areas for follow-up. The metallurgical test work is important for us to understand the best development route for the Dome North Lithium Project. The test work completed so far bodes well for achieving good recoveries in a DMS-flotation process route and we await completion of the second phase of test work to see if this is the case.” The Dome North project targets a 20 km strike length around 130km south from Kalgoorlie Boulder.

Copper production of 25,041 tonnes exceeded guidance for Aeris Resources as the company recorded a June quarter production of 6,672 tonnes which is a 10% increase on the previous quarter. The Acquisition of the Cracow Gold Operations was completed on July 1 which has a FY21 gold production guidance of 70,000oz – 75,000oz. with the first Aeris gold poured in early July. The copper production guidance at Tritton Copper Operations for FY2021 is between 23,500 tonnes and 24,500 tonnes. According to the company, there is cash and receivables of $69.4m at quarter end.

Record operating cash flow of A$352M, net mine cash flow A$225M and free cash flow A$188M has been reported by Evolution Mining as a June quarter highlight. Evolution produced group gold production increased to 218,104 ounces at an ASIC of A$1,088 per ounce. A breakdown of some highlights includes Cowal produced 60,594oz at an AISC of A$941/oz generating net mine cash flow of A$59.3 million. Ernest Henry produced 28,183oz at an AISC of A$(617)/oz generating record net mine cash flow of A$68.3 million. Mungari produced 37,178oz at an AISC of A$1,089/oz generating record net mine cash flow of A$39.8 million and Mt Rawdon produced 25,982oz at an AISC of A$1,305/oz generating record net mine cash flow of A$32.3 million The acquisition of the high-grade, long-life Red Lake gold mine in Ontario, Canada has added 27,428 ounces at an AISC of A$1,943 per ounce. A maiden Underground Ore Reserve and updated Mineral Resource at Cowal was made with a Maiden Underground Ore Reserve of 804koz and Mineral Resource increased to 2.9Moz Evolution Executive Chairman, Jake Klein, said: “This outstanding outcome has resulted in the potential to bring forward first production of higher-grade ore from the Cowal underground which will provide a step change to the operation’s production profile. Importantly, the Maiden Underground Ore Reserve is only a starting point on which to build on in the coming years. Our work at Cowal continues to demonstrate that this is a world class mineral system.”

Wrapping out a big day for gold operators as part fo the Morning News Bites June quarterly updates, Newcrest has released its figures for the quarter. There was a record annualised mined ore and mill throughput for the quarter at Cadia, which has been a top producer in Australia as reported by Surbiton Associates. Gold production was 7% higher for the quarter for Newcrest, Cadia again the shining light with a 21% increase in gold production compared to the prior quarter. Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said “Newcrest has safely delivered a strong fourth quarter enabling us to meet our Group gold production guidance for the year, notwithstanding the challenges of addressing the risks associated with the COVID-19 pandemic. Cadia exceeded the top end of its production guidance range and achieved record annualised mine and mill throughput rates in the quarter, further highlighting the strength of this world-class asset.”